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iBeacons (and more) 
ONA Chicago 
Sat.Sept 27, 2014 
11:30 - 12:30 
Chicago Ballroom VIII
Damon Kiesow 
@dkiesow 
#ona14ib
iBeacons (and more) 
Disintermediation 
Bluetooth, BLE, NFC 
Location 
Payments 
Opportunities 
Advertising 
Circulation 
...
Disintermediation (oversimplified) 
Advertising subsidized journalism 
Ad networks > local media :: Internet > intermediar...
Disruption 
Advertisers go direct* 
! 
! 
! 
! 
! 
! 
! 
*To slightly amend Dave Winer ca. 2009 bit.ly/gsWDIN 
Newspaper 
...
Disruption 2015 
Mobile Ads 
Browsing 
Data 
Location 
History 
Retargeting 
Transaction 
Store 
Visit
Disruption 2015 
Mobile Ads 
Browsing 
Data 
Location 
History 
Retargeting 
Transaction 
Store 
Visit
Question 
“If you participate in the movement 
that undermines your way of doing 
business, you have some say in how 
it e...
A quick review
What is Bluetooth? 
A protocol for short-range data exchange via radio 
frequency 
Created by Ericsson in 1994 
Intended t...
Why ‘Bluetooth’? 
Named for a King of Denmark and Norway (c. 935) 
Harald “Bluetooth” Gormsson who united the 
kingdoms
What is Bluetooth Low Energy? 
Bluetooth 4.0 (BLE) 
Same tech, lower power consumption 
Supported by most recent mobile ph...
And NFC is? 
Near Field Communications 
Similarities to RFID 
Low or no-powered tags 
Range of 20cm 
Popular in Android ph...
The important stuff
Apple’s next big thing 
Apple Pay - Wave your iPhone or Apple Watch to pay 
Combines BLE and NFC 
Location will be tied to...
Merges digital and physical payments 
Reduce credit card fraud and hacking (hopefully) 
Allows better behavioral tracking ...
iBeacons 
A brand name marketed by Apple 
Based on the BLE standard 
Works on Android 
Proximity ranging 
Micro-location 
...
credit: estimote
credit: Apple
credit: Macy’s
credit: MLB
iBeacons 
Why not use GPS?
iBeacons 
Work indoors 
Decentralized 
Tied to specific apps 
More accurate 
Not ‘absolute’ location 
Points of Interest
The basics 
Each beacon sends: 
A unique identifier 
A Major address 
A Minor address 
For example: 
UUID: B9407F30-F5F8-4...
The basics 
Store 1 Store 2 Store 3 
Major: 123 Major: 456 Major: 789 
Minor: 001 
Minor: 001 
Minor: 001 
Minor: 002 
Min...
Opportunity 
How many apps will people use? 
Will merchants form networks? 
Which vendor will own the ‘last mile’? 
What n...
Advertising 
Cost-per-click $ 
Ad connected to retailer iBeacon 
Tracks ad click & saves 
coupon or other offer to 
wallet...
Advertising 
Retargeting $$ 
Proximity to beacon 
re-triggers advertising 
Ad
Advertising 
Cost-per-alert $$ 
Alert 
Proximity to beacon 
triggers alert
Advertising 
Cost-per-engagement $$$ 
Retrieves offer & 
presents it to customer. 
Offer
Advertising 
Cost-per-acquisition $$$$ 
App confirms transaction 
and/or authenticates offer 
Pay
Circulation 
Open 
News
Circulation 
Print on demand 
Local offers 
Offer
Membership 
Local discounts 
Payments
Circulation 
Digital Access 
News
Content 
Points of Interest 
News
Contests / Marketing 
Scavenger hunt 
Find
Caveats 
Proximity 
Battery Life 
Apple/Google/Amazon/Paypal 
Will beacons go self-serve or programmatic 
!
Caveats 
GPS works just fine in many cases 
People will turn BLE off 
Alert fatigue 
Still an emerging tech
Thanks 
Damon Kiesow 
@dkiesow 
damon@kiesow.net 
dkiesow@mcclatchyinteractive.com
Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014
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Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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Pre-conference draft of an ONA14 session - delivered Saturday Sept 27 2014 in Chicago. http://ona14.journalists.org/sessions/ibeacons/

Hyper-accurate indoor location and the merging of digital and physical commerce is the next battleground for Apple, Google, Amazon and the other Internet giants. Apple has introduced this as iBeacons, but the underlying Bluetooth Low Energy (BLE) technology is open to anyone and works across hundreds of current mobile devices. We'll discuss business and development lessons about how to develop consumer and advertiser-focused products while this ecosystem is still in its infancy.

Published in: Mobile

Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

  1. 1. iBeacons (and more) ONA Chicago Sat.Sept 27, 2014 11:30 - 12:30 Chicago Ballroom VIII
  2. 2. Damon Kiesow @dkiesow #ona14ib
  3. 3. iBeacons (and more) Disintermediation Bluetooth, BLE, NFC Location Payments Opportunities Advertising Circulation Membership Content
  4. 4. Disintermediation (oversimplified) Advertising subsidized journalism Ad networks > local media :: Internet > intermediaries
  5. 5. Disruption Advertisers go direct* ! ! ! ! ! ! ! *To slightly amend Dave Winer ca. 2009 bit.ly/gsWDIN Newspaper Association of America March 2012
  6. 6. Disruption 2015 Mobile Ads Browsing Data Location History Retargeting Transaction Store Visit
  7. 7. Disruption 2015 Mobile Ads Browsing Data Location History Retargeting Transaction Store Visit
  8. 8. Question “If you participate in the movement that undermines your way of doing business, you have some say in how it evolves.” ! — Dave Winer
  9. 9. A quick review
  10. 10. What is Bluetooth? A protocol for short-range data exchange via radio frequency Created by Ericsson in 1994 Intended to connect PCs and mobile phones (replacing RS-232 serial cables) UHF radio frequencies (2.4 GHz) Same as garage door opener, baby monitor, cordless phone, WiFi (802.11g), Microwave ovens
  11. 11. Why ‘Bluetooth’? Named for a King of Denmark and Norway (c. 935) Harald “Bluetooth” Gormsson who united the kingdoms
  12. 12. What is Bluetooth Low Energy? Bluetooth 4.0 (BLE) Same tech, lower power consumption Supported by most recent mobile phones Designed for health, fitness, wearables
  13. 13. And NFC is? Near Field Communications Similarities to RFID Low or no-powered tags Range of 20cm Popular in Android phones (and iPhone 6) Used in contact-less payment systems Can bootstrap other channels such as WiFi, BLE
  14. 14. The important stuff
  15. 15. Apple’s next big thing Apple Pay - Wave your iPhone or Apple Watch to pay Combines BLE and NFC Location will be tied to iBeacons Apple’s fee is being paid by the bank, not merchants
  16. 16. Merges digital and physical payments Reduce credit card fraud and hacking (hopefully) Allows better behavioral tracking And ad re-targeting Further disintermediates traditional media
  17. 17. iBeacons A brand name marketed by Apple Based on the BLE standard Works on Android Proximity ranging Micro-location Personalized alerts Connection to retail point of sale for payments (estimote beacon)
  18. 18. credit: estimote
  19. 19. credit: Apple
  20. 20. credit: Macy’s
  21. 21. credit: MLB
  22. 22. iBeacons Why not use GPS?
  23. 23. iBeacons Work indoors Decentralized Tied to specific apps More accurate Not ‘absolute’ location Points of Interest
  24. 24. The basics Each beacon sends: A unique identifier A Major address A Minor address For example: UUID: B9407F30-F5F8-466E-AFF9-25556B57FE6D Major: 123 Minor: 001
  25. 25. The basics Store 1 Store 2 Store 3 Major: 123 Major: 456 Major: 789 Minor: 001 Minor: 001 Minor: 001 Minor: 002 Minor: 002 Minor: 002 }UUID: B9417F30-F5F8-463E-AFE9-22546B57FE6C
  26. 26. Opportunity How many apps will people use? Will merchants form networks? Which vendor will own the ‘last mile’? What needs can we serve for readers? What needs can we serve for local merchants?
  27. 27. Advertising Cost-per-click $ Ad connected to retailer iBeacon Tracks ad click & saves coupon or other offer to wallet Ad
  28. 28. Advertising Retargeting $$ Proximity to beacon re-triggers advertising Ad
  29. 29. Advertising Cost-per-alert $$ Alert Proximity to beacon triggers alert
  30. 30. Advertising Cost-per-engagement $$$ Retrieves offer & presents it to customer. Offer
  31. 31. Advertising Cost-per-acquisition $$$$ App confirms transaction and/or authenticates offer Pay
  32. 32. Circulation Open News
  33. 33. Circulation Print on demand Local offers Offer
  34. 34. Membership Local discounts Payments
  35. 35. Circulation Digital Access News
  36. 36. Content Points of Interest News
  37. 37. Contests / Marketing Scavenger hunt Find
  38. 38. Caveats Proximity Battery Life Apple/Google/Amazon/Paypal Will beacons go self-serve or programmatic !
  39. 39. Caveats GPS works just fine in many cases People will turn BLE off Alert fatigue Still an emerging tech
  40. 40. Thanks Damon Kiesow @dkiesow damon@kiesow.net dkiesow@mcclatchyinteractive.com

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